Amazon is interested in snapping up Homebase stores to bulk up its delivery operations.

The etail giant would use the stores as warehouses, The Sunday Telegraph reported. Homebase plans to shut 42 stores as part of a CVA proposal unveiled last week.

An Amazon swoop on Homebase branches reflects high demand for warehouse space as online and multichannel retail grows. Homebase stores in urban locations would further strengthen Amazon’s last-mile delivery capabilities.

Any deal would be dependent upon creditor approval when Homebase seeks support for its CVA at the end of this month.

CVAs have become increasingly controversial as retailers such as House of Fraser faced a landlord backlash. However, the British Property Federation has said that Homebase has followed best practice when drawing up its plans.

Homebase’s CVA, which is likely to cost about 1,500 jobs, follows the retailer’s sale for £1 to restructuring specialist Hilco after its disastrous ownership under Wesfarmers, which botched the launch of its Bunnings brand in the UK.

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